Rising levels of per capita disposable income and product innovation propelled revenue growth.
Los Angeles, CA (PRWEB) November 17, 2013
The Flour Milling industry benefited from rising levels of per capita disposable income and product innovation over the past five years. As consumers had more disposable income, they increased demand for industry products, thereby benefiting industry producers. During this time, the world price of wheat increased. “This commodity is a primary input in several industry products and its price increase over the five-year period enabled many of the larger industry players to pass cost increases to consumers in the form of higher product prices,” according to IBISWorld Industry Analyst Jeffrey Cohen. As this occurred, downstream markets such as grocery wholesalers and retailers drove demand for industry products. Overall, industry revenue increased at an annualized rate of 0.6% to an estimated $2.0 billion in the five years to 2013. This includes expected growth of 0.2% in 2013.
Over the past five years, a growing number of consumers became more health conscious, causing them to be more aware of the negative health effects that result from eating high-sodium foods. This caused consumers to reduce demand for products that were perceived to be unhealthy and industry producers responded by introducing healthy versions of their existing products.
The industry is anticipated to experience faster revenue growth over the five years to 2018. “A factor that will be responsible for this trend is an increase in per capita disposable income, which drives demand for industry products among consumers,” says Cohen. Also, during this time consumers will continue to demand healthier versions of existing products, allowing operators to expand their customer base. Furthermore, producers will respond by introducing a greater variety of healthy products.
For more information, visit IBISWorld’s Flour Milling in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry participates in the following activities: milling grains and vegetables into flour; cleaning, polishing and milling rice; and producing malt from a variety of cereal grains. Industry operators purchase grain inputs like wheat, corn, barley and rice from wholesalers or directly from growers. They then process them into flour, gluten, starch and malt, and sell these products to grocery wholesalers or other food-related industries.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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